Success: More bad news for the Israeli economy
July 4, 2002
Isr**li officials continued to draw a bleak picture of the Isr**li
economy despite constant efforts by the government to encourage
growth and create jobs.
Former Isr**li Prime Minister Ehud Barak on Wednesday described
the state of the Isr**li economy as "fragile."
Earlier, Isr**li Prime Minister Ariel Sharon admitted that "we
are going through difficult times."
And earlier, Isr**li finance minister Silvan Shalom admitted, rather
belatedly, that foreign investors had virtually lost confidence
in the economy of the Zionist state.
Meanwhile, other economic indicators continued to illustrate the
downturn course of the Isr**li economy.
This week, statistical figures released by the Isr**li government
showed that only 33000 tourists visited the Zionist state in group
tours in the first half of 2002, compared with 116,000 in the corresponding
period in 2001, and 500,000 in the first half of 2000.
The figures also showed that group tourism is 70% below the level
in the corresponding period last year and 94% less than in 2000.
The group tours arriving in Isr**l this year were so-called "solidarity
tours" that stayed for brief periods.
Meanwhile, the Isr**li Hebrew newspaper, Ha'aretz, reported Thursday
that European investments in Isr**l all but evaporated due to the
The paper quoted Max Burger Calderon, chairman of the European
Venture Capital Association, as saying that the Palestinian uprising
dealt a sharp blow to Isr**l's technology sector.
"He said with rare frankness what Isr**lis refuse to hear:
the Nasdaq didn't cause Europeans to avoid in investing in Isr**l.
The Palestinian intifada and security situation did."
The paper said Burger-Calderon's comments caused a storm in Isr**l
and that Isr**li technology sector managers have difficulty accepting